Yesterday three economists, (Tobias Preis of Warwick Business School in the U.K., Helen Susannah Moat of University College London, and H. Eugene Stanley of Boston University) published an eye-opening paper that said Google Trends data was useful in predicting daily price moves in the Dow Jones industrial average, which consists of 30 stocks.
Gerd adds: yet another reason why the current form of stock markets won’t exist in 5 years;)
Push to exploit an ocean of information
It took atomic physicists Ari Tuchman and John Stockton four years to realise that there was no future for the business they had set up to make gyroscopes for nuclear submarines and missiles.
Last year, however, they hit on a new use for the complex algorithms they had written: to predict what kind of people are most likely to buy tickets for Hollywood’s latest blockbuster films.
A new global report released today by IBM and the Saïd Business School at the University of Oxford reveals that most Big Data initiatives currently being deployed by organizations are aimed at improving the customer experience. Yet, despite the strong focus on the customer, less than half of the organizations engaged in active Big Data initiatives are currently collecting and analyzing external sources of data, like social media. Via IBM News room
Bidding on Your Personal Browser History
Proclivity Media and others are working very hard to find out what you want to buy, and they’re getting to know you very well along the way.
Here’s the backstory: one particularly savvy way of advertising has begun receiving a lot of attention lately. It’s called re-targeting, and it relies on personal browser history to figure out what users may want to buy.
Automated programming bids on ad space individual users see based on their personal search history, more traditional consumer reports and retailer records, selling one-time ads at several hundred dollars a pop.
via Internet Retailer:
Proclivity uses its Consumer Valuation Platform to place cookies in consumers’ web browsers to monitor their browsing behavior around the Internet and tracks their specific interactions on a client retailer’s site using tiny pieces of embedded software code in site content. Proclivity adds data from the retailer, including the merchant’s own web analytics on shoppers’ click activity, and information on sales, merchandizing campaigns and product pricing, then scores it to determine when each customer is likely to buy and at what price point.
This is very similar to Facebook Exchange, which has been working cautiously well since June.
Here’s the Wall Street Journal:
Facebook is using its data trove to study the links between Facebook ads and members’ shopping habits at brick-and-mortar stores, part of an effort to prove the effectiveness of its $3.7 billion annual ad business to marketers.
FJP: This is big data at work — for many businesses, there’s a lot to find when comparing data sets that follow consumer behavior online and in stores.